1 Problem 23-3A Antuan Company set the following standard costs for one unit of its product Ibs/hrst Direct Materials Direct Labor Overhead Total Standard Cost 6 2 2 price per lb/hr $ 5.00 $ 17.00 $ 18.50 price per unit $ 30.00 $ 34.00 $ 37.00 $ 101.00 11 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the 12 factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month 13 at the 75% capacity level. 15 Variable Overhead Costs 16 Indirect Materials 45,000.00 17 Indirect Labor 180,000.00 Power 45,000.00 19 Repairs & Maintenance 90,000.00 20 Total Varaible Overhead Costs 360,000.00 21 Fixed Overhead Costs 22 Depreciation - Building 24,000.00 23 Depreciation - Machinery 80,000.00 24 Taxes & Insurance 12,000.00 25 Supervision 79,000.00 26 Total Fixed Overhead Costs 195,000.00 27 Total Overhead Costs 555,000.00 28 29 The company incurred the following actual costs when it operated at 75% of capacity in October 464,100.00 526,125.00 31 Direct Materials (91,000 lbs @ $5.10 per lb) 32 Direct Labor (30,500 hrs $17.25 per hr) 33 Overhead Costs Indirect Materials 44,250.00 Indirect labor 177,750.00 Power 43,000.00 Repairs & Maintenance 96,000.00 Depreciation - Building 24,000.00 Depreciation - Machinery 75,000.00 Taxes & Insurance 11,500.00 Supervision 89,000.00 42. Total Costs 560,500.00 1,550,725.00 MY CURE Formatting as Tablo Styles NO Use the drop down bones when necessary and use formulas for cells requiring amounts for answers 1. Examine the monthly overhead budget to the left and determine the price per unit for each of the Isted expenses and the total cost per unit for each variable cost. Then identify the total foed overhead costs per month. Variable Overhead Costs Price / Unit Fixed Overhead Costs Cost/Month 2. Prepare flexible overhead budgets (as in Exhibit 23.12) for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Flexible Standard Formula Total Cost Price Variance Quantity Variance DM Cost Variance 9-7-PSOAP Wiage N0P 2. Prepare flexible overhead budgets (as in Exhibit 23.12) for October showing the amounts of each variable and foxed cost at the 65%, 75%, and 85% capacity levels. 75% 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Flexible Standard Formula Total Cost Price Variance Quantity Variance DM Cost Variance 4. Compute the direct labor cost variance, including its rate and efficiency variances Actual Flexible Standard Formula Total Cost Rate Variance Efficiency Variance DL Cost Variance